The Ethiopian government is to build what could become the largest ever hydroelectric dam on the Blue Nile River off Bure town on the road to Nekemt at Bako-Ambo area in the Oromia Regional State, close to the border with Amhara.

The dam, which is expected to serve the three basin countries, Ethiopia, Sudan and Egypt, was proposed by the Nile Basin Initiative (NBI). The construction of the dam will be financed by the World Bank based on a prior agreement of the three countries. But the three countries are yet to agree on the details of how the dam will be put to use.

The dam was proposed by NBI, based on a preliminary visibility study conducted by the Eastern Nile Technical Regional Office based in Addis Abeba. It is the Ministry of Water Resources (MoWR) of Ethiopia who will invite tenders for the feasibility study and design of the dam, whereas the construction will be undertaken by the Ethiopian Electric Power Corporation (EEPCo).

“The project, after completion, will have the capacity to generate 2,100MW power,” Asfaw Dingamo, minister of Water Resources, told Fortune. “Because the resource is ours, we will generate and sell power to Sudan and Egypt.”

The feasibility and design consultancy will be financed by a grant of 414.2 million Br from Norwegian government, which has been given for this and other projects.

The Nile Basin Initiative was established to create an equitable use of the resources of the Nile Basin among the basin countries.

A 1964 study by the government of Ethiopia had identified four sites for hydroelectric dams on the Nile River course at Karadobi, Mabil, Mandaya and Border, located in Amhara, Benishagul Gumuz and Oromia regional states. The Ministry of Water Resources is revising the old study, although no specific schedule had been set for any construction at those sites as yet.

The Nile Basin Initiative was established 12 years ago, and it is in the process of evolving into a commission to have a permanent status in the basin issues.